In the construction industry, productivity and profit are always doing a dance. They are always partners no matter whether your firm is a global giant or a local sub. Whether productivity and profit perform well enough to make it onto the professional stage or just at the local club depends on both productivity and profit doing a well-choreographed performance. If the productivity on the jobsite is good, then your profit is likely better. If your work crews are not performing and productive, then your profits are likely not performing well either.
McKinsey & Company recently did a study authored by members of their team titled “Beating the low-productivity trap: How to transform construction operations” that focuses on 30 major UK infrastructure engineering and construction firms over the decade from 2005-2015 to measure their growth and to determine whether they either performed or underperformed in their markets.
Even though this study was about infrastructure engineering and construction firms centered in the UK, the points made and the tips offered can apply to every company doing the productivity-profit dance, no matter what your size, should “read and heed.” Read more » about The Productivity and Profit Dance